Two Chinese COVID-19 Vaccines were Approved by WHO

With the advent of the second wave of the epidemic, China’s newly developed vaccine has been approved by the World Health Organization and is affordable.
 

►China National Biotechnology Group or SinoPharma has two COVID-19 vaccine candidates approved by NMPA. It may first seize the huge vaccine market opportunity.
 

►Global COVID-19 vaccine manufacturers have conducted different studies and are accelerating their clinical trials.
 

It is very obvious that, as the virus has not been defeated and contained in some major economies in the world, the second wave of COVID-19 is coming. However, Chinese vaccine researchers have applied to the National Medical Products Administration (NMPA) for approval for marketing.
 

This is a breakthrough in global vaccine research because many candidate vaccines are undergoing clinical trials. Facing urgent demand from overseas, especially in Europe and the United States, these vaccine manufacturers should consider pricing and expanding production for the next level of business. At the same time, the Chinese government announced that the COVID-19 vaccine as a public health product will not be priced based on market demand and supply, but will be based on cost. The latest update of the vaccine payment solution is that the Chinese government can use centralized procurement and medical reimbursement.
 

Here, we will discuss China's vaccine pricing issues and the current status of global vaccine candidates, followed by the companies with the most investment value in the vaccine concept basket on the open market.
Two Chinese vaccines will be approved
 

As of September 24, China National Biotechnology Group (CNBG) has been applying for conditional regulatory approval for the General Vaccination Program. Both CNBG's COVID-19 vaccines are inactivated vaccines. Unlike non-replicating viral vector vaccines, inactivated vaccines consist of a large number of viruses that are grown in culture and then killed. Now, two CNBG vaccines are undergoing phase III clinical trials in Abu Dhabi, and some discussions about vaccine prices have attracted people's attention.
 

Mr. Liu Jingzhen once said that one dose weighs about four micrograms, and the price of two doses should be less than US$149. The company has provided vaccines to hundreds of thousands of people. CNBG Vice President Yang Huichuan said that the price of vaccine products has not been precisely determined, but important factors such as availability, safety, effectiveness and affordability will be considered when determining the price.
 

However, this logic goes against the wishes of the government, which labelled vaccines as public medical products. To be sure, the final price will be cheaper than the above price range. Even if we think that the price of both doses of the vaccine is US$100, by September 25, 2020, based on 33,249,563 confirmed cases worldwide, the current market size could reach US$3.32 billion.
 

 

In addition, what makes it a strong market is the COVAX project, which is an international project jointly led by GAVI (Gavi Vaccine Alliance), WHO and CEPI (Epidemic Prevention Innovation Alliance). The framework aims to ensure equitable distribution of vaccines among poor and rich countries by purchasing and delivering 2 billion doses of vaccine by the end of 2021. So far, 177 countries and regions have joined this global initiative.
 

According to the World Health Organization, seven other vaccine candidates in the third phase are expected to have test results in the next few months, and at least one vaccine will be put into mass production. It is estimated that by the end of 2020, the COVID-19 vaccine injection rate will reach 0.2%, and by 2021 it will reach 10%.
 

From the perspective of pandemic prevention and control, only two-thirds of the population injected can form an immune barrier. Considering the 7.6 billion people of the world, a large amount of vaccine will be needed sooner or later.
 

When to reach the goal and eliminate the virus depends on clinical trial procedures worldwide. Due to the high global demand, vaccine production will become a decisive factor. Vaccine developers are eager to increase their production capacity, but research and testing require a lot of time.
 

There are various technical approaches to develop COVID-19 vaccines, and they differ in cost and efficiency, including viral vectors (non-replicating/replicating), inactivated, nucleic acids (RNA and DNA), protein subunits, and T cell based Virus particles (VLP).
 

As of September 28, 2020, 40 vaccine candidates worldwide have entered clinical evaluation, and 151 vaccine candidates are undergoing preclinical evaluation. Among the 40 candidates in the clinical stage, 10 entered the Phase III trial of a country-based comparative study, including 5 Chinese participants.
 

In the overview of the technical route, each has advantages and disadvantages. DNA/RNA-based vaccines can be quickly developed, but there is no approved DNA/RNA vaccine for human medical use. In addition, even if the alternative name 'next-generation vaccine' is used, they often encounter regulatory obstacles. The second is a viral vector, which delivers highly specific antigens to target cells after vaccination, and highly expresses the antigen, but the existing level of human immune protection may reduce its effectiveness. For this type, the Chinese Academy of Military Medical Sciences, ConSino Biologics and the Gamaleya Institute of Russia have jointly developed two adenovirus-based COVID-19 vaccines, which have been approved for use internationally.
 

As the third type, inactivated vaccines contain viruses that have been thermally, chemically or irradiated, so they can trigger an immune response, especially for people with weakened immune systems but generally low immunogenicity. The only three inactivated vaccines in the third phase were developed by Sinovac Biotech and Sinopharma and Wuhan and Beijing Institutes of Biological Products, all of which received emergency approval from China. The protein subunit vaccine is made of purified virus fragments that trigger an immune response, but it may be an insufficient immune response and requires multiple doses.
 

 

Last but not least, the virus-like particle (VLP) vaccine is just the core of the virus. Therefore, this vaccine can trigger a strong immune response. However, the development of the COVID-19 vaccine is still in the preclinical stage, and it may take longer in the clinical trial stage. So far, there are 13 VLP candidate vaccines in pre-clinical evaluation, most of which are developed by universities and research institutions. However, there is only one VLP candidate vaccine in the first phase developed by Medicago Inc. and GSK.
 

From the perspective of investors, they should undoubtedly bid for fast-growing companies. As mentioned above, in addition to the short investment turnaround cycle, these almost mature vaccine candidates are also protected by COVAX. COVAX is a framework that involves most countries in the world, sharing medical resources to a certain extent at a negotiated and reasonable price. For a period of time, the price of the vaccine may be reasonable. Therefore, those vaccine developers will be relatively protected and encouraged to invest to obtain higher production.
 

Among all vaccine candidates currently in the third phase, most developers are collaborating between pharmaceutical companies and research institutions or university organizations. There are five Chinese companies, three American companies, one German company, one British company and one Russian company.
 

China is one of the few countries in the world where epidemics are endemic. It is expected that these vaccine manufacturers will export a considerable part of their products to other neighboring countries and countries in Asia under the COVAX framework. As the current situation develops, these pioneer vaccine manufacturers will become the first pharmaceutical companies to benefit from the pandemic, followed by companies in the second phase of clinical trials.